Friday, September 23, 2011

Amway Is Cheap And Low Risk?

One of the stupid things said by IBOs and Amway apologists is that the Amway business is cheap and low risk. While it can be true, it is not a good reason to get into business. While upfront costs can be somewhat cheap, these same people often to do not mention the ongoing costs and the cost of tools, which can add up to tens of thousands of dollars after a relatively short period of time.

Even if the opportunity is cheap to get started, wouldn't a bigger factor in starting a business be how likely you are to succeed? Amway's own numbers reveal that the opportunity is a poor one. That the average IBO earns $115 a month and that about one half of one percent of IBOs reach the Gold/Platinum level, where you might earn about $1000 a month or so. So one out of more than 200 IBOs reach a level where you earn close to minimum wage equivalent earnings (gross).

Even if something is cheap, it doesn't mean it's a good idea. Wha if you were being sold a car? The car is dirt cheap, but it looks like it may have trouble running and may have mechanical problems. Would you jump in and buy it because the salesman says it's cheap and low risk? Or would you decide that it's not worth it, even at a very low cost?

Many Amway leaders and/or those who show the plan, like to show the very best case scenario to IBOs, without giving the prospect a realistic and likely result. It's like saying the lottery is a good way to make money because the lottery winners can show off mansions, sports cars, and other fancy things they bought with their winnings. While the Amway business is not a game of chance, the presentation is done in a similar manner. A diamond is probably a 1 in 20,000 proposition, yet it is presented as if everyone in the room can go diamond. It is mathematically impossible. What is truly sad is even if that one diamond were truly wealthy (I have my doubts though), nearly all of that diamond's downline is losing money.

Cheap and low risk might sound like justification to get started, but people should ask if their small investment is worth it. Most people, the vast majority, would be better off taking the family to a movie or a nice dinner.

1 comment:

ExAmbot
said...

Good analogy with the car. why didn't i think of that before wasting 7 years and $30k plus?

It's presented as a low risk. it's not because it's true cost creeps up on you slowly over time. it's a cd here, a function there, a book here, a plane ticket over there...eventually it's sad sorry to add it all up.

You know if ambots were making the listed $115 per month they would be doing much better. even that figure is still a lie. if i am hanging out with warren buffet the average of our income is in billions! but in actual fact he will tend to keep almost all the majority and me...well... same with amway.

it's true for any diamond who's making money 99% of his pyramid members are losing it to him. when this crystallized for me that's why today i have no respect for a diamond whatsoever. they represent charlatans who have screwed others knowingly or unknowingly. and let's not forget that the majority of their incomes are from AMOs!

Yes MLMs hype whoever seems to be doing well. that's an illusion because that is always an exception. i think the numbers are 1 in 14000 ambots makes it to diamond. bad bad odds for an MLM "business"

About Me

I am writing this blog based on my experiences in the Amway/Quixtar business and the opinions I have formed based on those experiences.
I ran a 4000 PV business (with eagle parameters) only to discover that I was not profitable!
I'm not here to encourage any IBOs to quit, nor do I wish anyone to fail. I do encourage IBOs to ask their upline tough questions and I encourage IBOs to closely monitor their profit and losses as does a traditional business owner.

Guess who won? Amway – Prices Comptetive? Funny Story, the other day at work, I get a call from a friend, asking me to deliver a package f...

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